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Import duties on cycling goods


Capricorn
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pity i cant sticky this: but admin, would you be so kind?

Got this from UPS today:

Cycling shorts (classified as clothing): 45%
shoes: 30%

socks: 40 -45% depending on material used

bags: 30%
Gloves: 30%
Helmets (fullface or other): 25%
Knee pads and other protective equipment: 20%
plastic bottles: 15%
whole bicycles: 15%
Goggles, sunglasses: 0%
bike components: 0%
cycling electronics: 0%

 

Gels, powdered drinks: 20%

 

How to account for duties, VAT etc (thanks Myles). Note: item price depends upon ruling exchange rates at the time the transaction is completed with the retailer.

 

 

So calculation would be

Total Price = ((Item price + duty + 10%) x VAT) + (item + duty)

Or
(assuming VAT = 14%)
TP = (Item price + duty) x 1.154 

So for a full bike it's (cost + 15%) x (vat + 10%) = (cost x 1.15) x (14% x 1.1)

Please provide updates/corrections if you have any. Thanks smile.png I will update this post accordingly.

Thanks to Velouria for the find and Edman for bringing this to my attention:
Import Duty Calculator

Edited by Capricorn
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where do frames fit in?

 

falls under bike components, so zero rated.

 

Velouria: your compendium may have been posted elsewhere, but this is a cycling forum. I'ved tried to make the relevant information more easily accessible than downloading a file and then having to wade thru all the irrelevant stuff.

 

Also, as i mentioned in the footer, my list is not all encompassing. It's just based on my experiences, the most recent being yesterday when dealing with my latest order from CRC via UPS.

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What does all this mean?

pity i cant sticky this: but admin, would you be so kind?

 

Got this from UPS today:

 

cycling shorts (classified as clothing): 45%

shoes, socks, bags: 40%

Gloves: 30%

Helmets (fullface or other): 25%

Knee pads and other protective equipment: 20%

plastic bottles: 15%

whole bicycles: 15%

Goggles: 0%

bike components: 0%

cycling electronics: 0%

 

Please provide updates/corrections if you have any. Thanks :) I will update this post accordingly.

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I've been in the cycling industry for more than 15 years. If anyone thinks bike shops makes a killing they are mistaken. The local wholesalers are taking us all for a ride. For the last few years I have been importing most of my own stock. From CRC as well. And I can still sell it cheaper.

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What does all this mean?

 

EDIT 9/1/2012 - Use this handy calculator that Velouria found http://www.dutycalculator.com/

 

It determines how much you will have to pay to SARS when ordering stuff from oversees.

 

The steps to calculate the total duties and VAT are:

 

  1. Calculate the Rand (ZAR) value of the invoice (including shipping). This should be done by converting the foreign amount (INV) into ZAR using the SARS exchange rate (ROE) for the date of export. This is the customs value.
  2. Calculate the import duties, using the amounts in Capricorn's list (ID%), based on customs value. These are the Duties (D).
  3. Add 10% to the customs value from step 1. Multiply this new value by 14% to get the VAT amount for the goods.
  4. Add 10% to the Duties value from step 2. Multiply this new value by 14% to get the VAT amount for the duties.
  5. Add the Duties amount from step 2 to the two VAT amounts from steps 3 and 4 to get a the total amount payable to SARS.
  6. Add the clearing fee (usualy R25 for SAPO and R100 for UPS) to the step 5 value to get the total amount you have to pay.

All of the above expressed in algebra:

 

  1. CV = INV x ROE
  2. D = CV x ID%
  3. VATGoods = (CV x 1.1) x 0.14
  4. VATDuties = (D x 1.1) x 0.14
  5. TotalSARS = D + VATGoods + VATDuties
  6. Grand Total = Clearance Fee + TotalSARS

And, converting back to English, these are the actual percentages you will pay to SARS for the stuff on Capricorn's list:

 

cycling shorts (classified as clothing) : 67.3%

shoes, socks, (bags?) : 61.6%

Gloves, bike cases, (bags?) : 50.0%

Helmets (fullface or other) : 44.3%

Knee pads and other protective equipment : 38.5%

plastic bottles : 32.7%

whole bicycles : 32.7%

Goggles, sunglasses : 15.4%

bike components : 15.4%

cycling electronics : 15.4%

 

Some applicable links:

SARS -Customs Duty

SARS Exchange Rates

SARS Valuation Guide

SARS - Tariff Schedule 2011/04/07

 

Some useful tariff codes:

Duty free:

Sunglasses - 9004.10

Bicycle tyres/tubes - 4011.50/4013.20

Bicycle lights - 8512.10

Bicycle parts - 8714.*

 

15% Duty

Complete bikes - 8712.00.10

 

30% Duty

Bike case, possibly bags - 4202.*

Edited by Edman
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American Flyers: it's a standard means of protecting an internal market by raising massive import duties on competing products from overseas. Granted, in the case of cycling clothing, it's almost an over generalisation, as I'm not aware that south africa is a large manufacturer and exporter of cycling related clothing.

 

edman: thanks for that awesome breakdown. I was meaning to post up the equation. I was quite shocked to see how much tax on tax there is. Makes the overally cost balloon significantly! Hence my recommendation to everyone to do the calculations proper like, before placing an order from CRC. I'm not giving plugs to either the LBS or CRC (ok wait, i do LOVE CRC B) ), but it's in your pocket's own best interest to crunch some numbers first.

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Any pointers as to which of the 1023 pages is applicable to bicycles

 

Section 87.14 contains the good news (no charges at all).

 

That's the problem - tyres get their own section, lights, clothing, shoes etc.

 

Best bet is to search for "bicycle", or failing that, "sport" or "pedal".

 

The other catch is depending where the stuff is coming from. Bikes from the EU are charged at 5.7%, whereas if they come from the US it's 15%...

 

It's handy to know how much you should be paying as often Customs will overcharge (as in the cases of bike above).

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Hi guys (and gals)

So which equation should we be working with here?

 

cycling shorts (classified as clothing) : 67.3%

shoes, socks, bags : 61.6%

Gloves : 50.0%

Helmets (fullface or other) : 44.3%

Knee pads and other protective equipment : 38.5%

plastic bottles : 32.7%

whole bicycles : 32.7%

Goggles : 15.4%

bike components : 15.4%

cycling electronics : 15.4%

 

OR

 

cycling shorts (classified as clothing): 45%

shoes, socks, bags: 40%

Gloves: 30%

Helmets (fullface or other): 25%

Knee pads and other protective equipment: 20%

plastic bottles: 15%

whole bicycles: 15%

Goggles: 0%

bike components: 0%

cycling electronics: 0%

 

Also, what have been peoples experiences with ordering with CRC. Ive only heard good things but is there anyone out there thats been pinged for import duties with hidden costs etc. I support my local bike shop as much as I can but sometines it's all about economics.

 

Any info would be appreciative. Cheers

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Not sure which equation to go with, but ordered for the first time from CRC, oder been shipped on the 14th of June and still has not arrived :huh:

 

To CRC's credit though i mailed them to ask how long is a suitable time to wait, keeping in mind customs having a hard time of it with the FIFA circus thing going on at the moment. And they promptly replied saying that if its not here by tomorrow they will either ship it overnight again (with couriers not british post) or i can simply ask for a refund. With all the standard appologies attached to the mail.

 

So service wise so far I am happy, having to wait so long sucks but I am getting a pair of ergon Graphites for R150 cheaper than local SA stores sell the ergon magnesium grips. So worth while :D

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